Direct Labor Costs Clause Samples
The Direct Labor Costs clause defines which expenses related to employee labor are considered reimbursable or chargeable under a contract. Typically, this clause specifies that only wages, salaries, and certain payroll taxes or benefits directly attributable to work performed on the project are included, while excluding indirect or overhead labor costs. Its core function is to ensure transparency and fairness in billing by clearly delineating which labor expenses can be passed on to the client or included in project cost calculations.
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Direct Labor Costs. Direct Labor Costs shall be the total number of allowable hours worked on the project by each individual multiplied by the Labor Rate identified in the Cost Summary (Exhibit B) for such individual.
a. The County shall only pay the Labor Rate and shall not pay any premium associated with overtime.
b. Labor Rates may be subject to reasonable adjustments in accordance with the following provisions:
(1) Labor Rates shall not be modified prior to @MONTH< DAY< YEAR. After @MONTH< DAY< YEAR, any increase in Labor Rates shall be effective for a minimum period of at least 365 calendar days.
(2) The County has established a maximum labor rate limitation. Labor rates shall not exceed the maximum labor rate limitation except in exceptional and rare circumstances when the County, in its sole discretion, determines it is appropriate to pay a greater rate.
(3) The current maximum labor rate is $71.74. The County will review the maximum labor rate limitation and adjust it either upward or downward in June of every year.
(a) If the new maximum labor rate limitation is greater than the current maximum labor rate established in this contract, the new maximum labor rate will be effective at the next regularly scheduled date for labor rate adjustments. Adjustments are based on the most recent June maximum labor rate.
(b) If the new maximum labor rate is less than the current maximum labor rate established in this contract:
(i) For personnel already assigned to the contract who have reached the older higher maximum rate will maintain the rate previously approved by the County;
(ii) For new personnel or personnel who have not reached the maximum labor rate limitation, the new lower maximum labor rate limitation will apply.
(4) A Labor Rate increase must be based on an actual and verifiable increase in labor costs.
(5) The County has the right to refuse increases that lack reasonable justification.
(6) This Agreement includes @ $DOLLARS (@) that is established to cover increases in labor rates. This fund is to be called the Labor Escalation Pool. The Labor Escalation Pool is calculated based on a 1.7% escalation on Labor Rates starting @ MONTH< DATE< YEAR. The Consultant shall manage the project to ensure that increases in Labor Rates do not exceed the Labor Escalation Pool. Any funds that are not used for increases in Labor Rates shall not be paid to the Consultant.
(a) Every year the County establishes the escalation percentage applicable on architectural and engineering and pr...
Direct Labor Costs. In order to effectively enforce the provisions of this Article, the EMPLOYER agrees that records in its possession or those to which the EMPLOYER has access pertaining to direct labor costs will be made available for inspection within twenty (20) days after a written request thereof by the UNION.
Direct Labor Costs. These are the labor costs determined by either the estimated or actual number of additional craft hours and the hourly cost necessary to perform the change in the Work, or the unit labor costs applied to the material quantities and extended, provided the unit labor costs are developed from the above craft hour cost, whichever is applicable, according to industry practice. The hourly cost shall be based upon the following:
Direct Labor Costs. All expenditures for salaries, personnel health and safety, fringe benefits, Labor Services Contractor fees and services, taxes (including sales tax), insurance and union adders (if applicable) incurred by Contractor's Labor Services Contractor for permanent and temporary personnel who are utilized by Contractor at the site to perform Operation, Routine Maintenance and clerical services under this Agreement (exclusive of Direct Management Costs). Direct Labor Costs also include personnel incentive programs, hiring, transfer, relocation, medical examination, Host assessments related to labor matters, training (technical and supervisory), travel and living expenses for training programs, benefit administration, consistent with Contractor's employee policies as applicable to the Combined Facility, lawyer and consultant fees related to any items set forth in this Section 1.12, and other Work Scope related expenditures, all as undertaken with the prior review and written approval of Owner and Contractor. All such items included shall be defined as Direct Labor.
Direct Labor Costs. Hourly rates for employees of the Relocation Consultant will be based upon established hourly rates as shown in Exhibit “B”. Included in the established hourly rates are wages, overhead, general and administrative expenses, and profit.
Direct Labor Costs. The term “Direct Labor Costs” means costs for Design Build Entity’s and/or Subcontractor(s)’ labor that includes the necessary payroll cost for labor, including first level supervision, directly engaged in performance of the changes in the categories listed in Proposed Change Order.
Direct Labor Costs. Compensation for Contractor’s and/or Subcontractor(s)’ labor shall include only the necessary payroll cost for labor, including first level supervision, directly engaged in performance of the work of the Change Order ("Direct Labor Costs").
53.1.1.1. Direct Labor Costs shall not exceed the current prevailing wages in the locality for performance of the changes; and the labor burden or labor charges, which shall only include documented FICA, Medicare, unemployment, and Workers’ Compensation charges and no other charges.
53.1.1.2. Use of a classification which would increase labor costs will not be permitted. Exceptions will be permitted only when the Contractor establishes, to the satisfaction of the Judicial Council, the necessity for payment at higher rates or classifications.
Direct Labor Costs. Direct Labor costs shall be paid in an amount equal to the product of the Direct Salary Costs and the Multiplier which are defined as follows:
Direct Labor Costs. Salaries and wages paid to ENGINEER’s personnel engaged directly on the Project, including engineers, draftsmen, technicians, designers, surveyors, resident project representatives and other technical and administrative personnel; but does not include indirect payroll related costs or fringe benefits.
Direct Labor Costs. Direct Labor Costs mean salaries and wages paid to all the CONSULTANT’s personnel engaged directly on the project.